Share of bank lending to the industry and construction not affects the public

Share of bank lending to the industry and construction not affects the public

access_time2018-09-21 09:25:39

"If industry and construction  lead in the banks’ loan  portfolio, the financial sector underpins the economic growth. The  impressive statistics " don’t affect  substantially either  the public  or  the business sector," Rati Abuladze, the Doctor of Economics , says in a conversation with "Commersant".

As reported, industry and construction hold the largest share of the loan portfolio of banks.

According to Rati Abuladze, such data prove that the country needs a full renewal to  recover society, business and system.

It’s worth mentioning the effect of credit products in terms of stimulating private sector. In particular, Considering the increase in the total  lending, which is in line with GDP growth.

In business loans, not only the loans attracted from commercial banks, but also the share of alternate sources of financing, are to be taken into account. For instance, the share of FDI  in total lending to companies is 52%, and the share of bonds - 1.8%. The volume of inactive loans has also decreased, which means improvement of financial position of companies, " Abuladze says.

He emphasizes that taking loans by the business sector is not a "bad signal". The main thing is the business to pay the loan and the current  environment to give the possibility of covering loans.

According to the National Bank of Georgia, in August 2018, commercial banks’ lending of the country’s economy and physical persons amounted to GEL 22,781,593 that is GEL 136 969 more  compared to July.

According to the statistics, the loan portfolio of individuals amounted to GEL 11 million 270 826 in August. The loan issued to individual entrepreneurs totaled 1 million GEL 447 915. The real estate secured loans amounted to GEL 6, 990, 884 and consumer lending  makes up GEL 3 million 710 554. The rest of the loan portfolio was distributed as follows:

Industry - GEL 2, 457, 678

Construction - GEL 1,006, 689

Operations with real estate - GEL 943 310


Hotels and restaurants - GEL 865 141

Financial mediation - GEL 552 009

Transport and communications - GEL 490 506

Health and Social Services - GEL 290 191

Education -  GEL 118 363


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